Are you a foreign national facing criminal charges in Korea? Navigating the local legal system can feel overwhelming, especially with the added challenges of language barriers and cultural differences. This guide offers an overview of the criminal defense process in Korea, with a special focus on Korean criminal investigation procedures, highlighting the crucial role a skilled Korean criminal defense attorney plays during this critical stage.
Korean Shareholder Agreements and Voting Agreements: Key Lessons from the ADOR-New Jeans Dispute
Shareholder agreements are essential tools for defining the rights and obligations of shareholders when multiple parties collaborate on a business or project. These agreements are commonly used in joint ventures and M&A transactions and are increasingly seen in investment contracts between financial investors and Korean startups.
In the entertainment industry, where collaboration between large labels and creative talents often forms the foundation of new ventures, shareholder agreements play a significant role in corporate governance. A recent dispute over ADOR, the label behind the K-Pop girl group New Jeans, highlights the legal implications of shareholder agreements, particularly voting rights agreements, in Korean joint ventures.
In the ADOR case, the Seoul Central District Court upheld the validity of the director appointment and voting restriction clauses outlined in the shareholder agreement and subsequently issued an injunction preventing the majority shareholder from the exercise of voting rights in an attempt to oust ADOR’s CEO.
This ruling serves as a key example of how shareholder agreements and voting agreements function in joint venture management disputes. It offers valuable insights not only for the entertainment industry but also for foreign companies engaged in joint ventures in Korea across various sectors. (more…)
How to Recover Cash Seized by the Korean Customs
If you’re traveling to Korea for business or leisure, carrying large sums of cash can lead to serious legal issues if not declared properly. Foreign travelers are often unaware of the strict requirements, and as a result, they risk having their cash seized by Korean customs for violating the Foreign Exchange Transactions Act. Once your money is seized, you could face fines or even lose your funds permanently.
In this post, we will focus on how foreign travelers can recover seized cash from Korean customs and explain why hiring a lawyer is critical for a swift and successful resolution.
Korean Inheritance Tax Liability of Foreign Heirs: A Supreme Court Ruling
Korean Inheritance tax can be a complex issue, particularly for those living abroad. An important ruling by the Korean Supreme Court (Supreme Court, 1994. 11. 11. 94nu5359 Decision) sheds light on whether inheritors residing outside South Korea must pay inheritance tax in Korea when they just inherited foreign assets from a non-resident deceased. This post aims to clarify the key points of the ruling and its implications for foreign heirs.
Rules of Employment under Korean Labor Law: Insights for Foreign Companies with Korean Offices
Expanding your business into South Korea requires navigating a complex landscape of local labor laws. For foreign companies, understanding the intricacies of the Korean Labor Standards Act (LSA) is essential to ensure compliance and foster a productive workplace. This article aims to demystify the process of establishing the rules of employment in Korea, focusing on key requirements, common challenges, and practical advice for international businesses.
Understanding Severance Pay Entitlement for Foreign Executives in South Korea
Foreign executives working in South Korea encounter a diverse range of opportunities and challenges. Among the various aspects that require attention, understanding the intricacies of severance pay entitlement under Korean labor law is paramount. One of the key questions that often arise is whether foreign executives are entitled to legally mandated severance pay in South Korea. In this article, we will delve into the complexities surrounding severance pay for foreign executives, shedding light on the legal framework and crucial considerations. (more…)
Korean License Agreements 101: Everything You Need to Know Before Signing
Are you a company looking to expand into the Korean market? If so, you’ll need to be familiar with Korean license agreements. These agreements are critical for protecting your company’s intellectual property and ensuring a smooth entry into the Korean market. But navigating Korean laws and regulations, understanding the different types of license agreements, and negotiating key provisions can be a daunting task. That’s why we’ve put together this comprehensive guide to Korean license agreements 101.
In this article, we’ll explore the different aspects of Korean License Agreements that foreign companies need to know before signing a Korean license agreement. This includes the key Korean laws and regulations affecting license agreements, the differences between exclusive and non-exclusive license agreements, the most important provisions in a Korean license agreement, and how to protect your intellectual property in the Korean market. (more…)
Is the Korean Data Protection Law Applicable to Foreign ICT Service Providers?
Before its major amendment in 2020, the data protection and privacy matters of ICT service providers were regulated by the Act on the Promotion of Information and Communications Network Utilization and Information Protection (“Network Act”). The data protection and privacy clauses in the Network Act, however, were later integrated into the Personal Information Protection Act (‘PIPA’) in 2020 which is the current data protection and privacy act in South Korea.
Although the PIPA doesn’t have an explicit clause, it is a general view of a Korean regulatory agency that the PIPA is applicable to any foreign business entity operating outside of Korea, so long as their businesses target Korean customers. (more…)
Starting a Korean Subsidiary or a Startup: Stock Company and LLC as the Business Entity
When you start a business in Korea, whether it is a Korean subsidiary or a startup, choosing the right business structure has huge implications for its operation, liability, and future investment.
In the U.S., a joint stock company(C-Corporation) and a limited liability Company(LLC) are often used as business entity by foreign investors and startups. The same applies in South Korea.
So, in this article, our Korean business lawyer explains these two entities with more emphasis on the Korean LLC, which is called a Yuhan Chegim Hoesa(YCH).
Recognition and Enforcement of Foreign Judgments in South Korea
Let’s say you obtained damages recovery judgment from a U.S. court against a Korean residing in the states. Soon after your excitement for the winning judgment, however, you found he had no assets in the states to fulfill your judgment. This could also happen in litigation between U.S. citizens in a U.S. court where the losing defendant moved to South Korea and there are no assets left in the U.S. You might have spent quite a large amount of legal fees to win the judgment already, but you think your judgment is now in great peril to become useless. This horrible situation might frustrate you.
But, don’t worry too much. You can enforce your duly obtained U.S judgment in South Korea. If you are sure the defendant has enough assets to cover your claims in the judgment and your legal fees, you are encouraged to file an enforcement order for a foreign judgment to a Korean court.